The XYZ partnership has the following balance sheet: Basis FMV Land $66,000 $51,000 Accounts Receivable...
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The XYZ partnership has the following balance sheet: Basis FMV Land $66,000 $51,000 Accounts Receivable 0 15,000 Inventory 24,000 45,000 Collectibles 3,000 9,000 $93,000 $120,000 Liabilities $30,000 $30,000 Capital, X 21,000 30,000 Capital, Y 21,000 30,000 Capital, Z 21,000 30,000 $93,000 $120,000 a. If X sells her partnership interest to W for $30,000 cash, what is her gain or loss, and what is its character? (5 points) b. What basis will W take in the partnership? (5 points) c. If a Sec. 754 election is in place, what will the balance sheet look like after the transaction?
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